Avoiding Identity Theft During the Holidays
Of all the things you might want for Christmas, a clone is probably not one of them. But if statistics are true to form, in the 12 days leading up to Christmas nearly quarter of a million Americans will lose something that Santa won't be able to replace – their identity.
With identity thefts occurring at the rate of an average of 25,000 every day, the Christmas holiday season is just as big a business opportunity for identity thieves as it is for retailers.
So to help you keep your good cheer and your identity, we've taken a look at a dozen ways your identity could disappear during any Christmas holiday period and what you can do to prevent it:
Phishing
Phishing has become one of the costliest and most lucrative forms of identity theft, increasingly being run by organized crime gangs, carefully designed and well funded to dupe even the most cautious user.
Phishing uses convincing-looking but bogus emails and websites — carbon copies of well-known and trusted brands like retailers and banks — to trick you into revealing confidential financial information that can be used to steal your identity.
The messages usually take the form of a warning that you that you need to update your account or confirm your account information to avoid having your account frozen.
This kind of scam is particularly successful around Christmas, a time when no user wants their bank accounts or credit cards frozen. And you might be amazed at how many consumers still fall for this scam.
Gartner Research estimates that phishing netted more than $10 billion for identity thieves last year, and tens of millions of Americans receive phishing emails each year with nearly 2 million consumers fall for the scam.
How Can You Grinch This?
Pretty easily if you're paying attention. Make it a rule to never, ever give any personal, financial, or security (like a password) information to any email request, either in response to the email or through a website the email links you to.
If you get such an email and you have an account with that company, go directly to the website of the company named, call the customer support number on the website, and ask for more information. Don't ever click on a link in the email because the sender can easily spoof the website they link you to. And don't call any numbers offered in the email.
Bogus Receipts By Email
A new variation of an old scam involves the use of email notification of receipts for goods you never ordered. The behavioral exploit is (1) around Christmas everyone is dealing with receipts and therefore expecting them; and (2) the scammer is hoping to panic you into opening an email attachment you normally might be suspicious about.
The goal of the email is usually to trick you into installing a Trojan horse or similar malicious code on your computer when you open the attachment, which will then steal passwords and other information and gift them to an identity thief.
How Can You Grinch This?
Don't open email attachments unless you are expecting them, even if you recognize the sender. And make sure you have anti-virus and anti-spyware protection with up-to-date definitions on every computer you use.
If you're still curious about the email, call the customer support number for that company, as listed on their website, and enquire from there. Don't click on any link, or trust any information offered in the email.
The "Hard-to-find" Deal
A couple of years ago thousands of online shoppers were bilked out of millions of dollars by bogus websites offering that year's "must have" gift, the Sony PlayStation2.
Every year we expect to see variations on that theme where identity theft, rather than simple fraud, is the primary motive.
For example, when you try to order that last minute gift at a too-good-to-be-true price, after entering all your credit card details you may receive a message that goes something like "Sorry but our servers are busy and we are unable to process your order at this time. Please try again later."
What you don't realize is that the thieves may have just grabbed a copy of your credit card number, address, and verification number. And what's more, you're unlikely to be suspicious because you believe the transaction never actually occurred.
How Can You Grinch This?
Only purchase from websites that you know and trust. And make sure it's the real site and not a spoofed or lookalike site. Don't visit the website through a link in an email or from another website — instead enter the website address directly (and carefully) into your browser.
Mail Theft
Mail theft has always been a favorite for identity thieves, and this year you can expect your mail to get plenty of attention from petty thieves, opportunists, and organized crimes gangs.
They're after anything that can be used to clone your identity or simply enrich their bank accounts — things like incoming and outgoing checks (as you pay off those big credit card bills), bank statements, credit card statements, credit card offers, gift cards and certificates, and even cash.
How Can You Grinch This?
Be very careful with your incoming and outgoing mail during the holidays. If possible, have your mail delivered to your front door and not to a mailbox at the end of your driveway.
Deliver mail to the USPS instead of leaving it in a curbside mailbox to be collected. Try paying as many bills online as you can, and give as many cash/check gifts as you can in person.
Don't print your full address on checks either, and only have your first initial and last name printed — that way a thief will have great difficulty signing your name.
Nearest and Dearest
One of the saddest facts about identity theft, according to a number of studies, is that most identity thefts are committed by people known to the victim, including friends, neighbors, co-workers, and even family.
According to the Federal Trade Commission (FTC), more than 50% of identity thefts could fall into this category, and a recent study by Michigan State University found that as many as 70% of all identity thefts can be traced to theft in the workplace by employees.
The holidays often put great pressure on consumers to buy more, and for those who can't afford to out of their own resources, they may be tempted to turn to yours instead.
How Can You Grinch This?
Remove the temptation. Don't leave financial information, including bank statements, credit cards, checkbooks, and pre-approved offers lying around your home or workplace where they can alert and tempt someone you trust.
And instead of giving a check as a gift, consider instead a gift card or certificate — something that can't be used to clone your identity if stolen.
Electronic Greeting Cards
At the risk of offending the entire online greeting card industry, I personally recommend never sending or opening electronic greeting cards because they can very easily be used to hide things like computer viruses, spyware, and Trojans that can target your identity.
While these cards can often be funny, cute, cheap (even free) and very convenient for those last minute procrastinators, if not legitimate they can bear an unwanted gift that will just keep on giving, and costing the victim for years to come. And I don't think you want to be remembered that way.
How Can You Grinch This?
Make the effort and send a real card by mail or in person. If you have to send a last minute electronic greeting, a personal email with no attachments is just as good and perhaps even more appreciated.
Or use a reputable card company that sends the recipient a link to a web-based card rather than attaches the card to the email.
If you receive such a card, check with the sender before you open it (by calling and thanking them — if they don't know what you're talking about, you know you're being scammed).
And be careful about websites that ask you to sign up to send unlimited electronic or printed cards to all your friends free of charge.
Many of these scams require you and the recipients to download and install software that can include spyware that can be very difficult to remove.
Free Software
On the subject of spyware, don't be tempted to offer copies of freeware or shareware just so you can keep your Yuletide costs from drowning you. Many of the free and free-ish software programs available on the internet carry costly payloads like spyware that can be used to steal information from the recipient's computer. It's not a gift that anyone wants to give or receive.
How Can You Grinch This?
Avoid it, cheapskate! Or if you must, only download from reputable websites like Download.com that go to great lengths to guarantee the integrity of the software they promote.
Pickpockets
Just like their close cousins, the burglars, pickpockets see the holidays as their biggest and best revenue opportunity, and your gift to them this year could be your wallet or purse.
The holidays are an excellent time for pickpockets because of big crowds, big spending, and hassled shoppers too busy to notice that they're being, well, noticed.
How Can You Grinch This?
Think about shopping as a covert mission, and as with any such important missions always travel light. The most you're likely to need to go to the shopping mall this year is a credit card (yes, just one) and a driver's license. So slip them into an inside pocket and leave bulky big targets at home.
But if you feel you must go shopping with absolutely every credit card you possess, make sure before you go that you make a photocopy of everything in your wallet or purse, and both sides, so that if you do fall victim to a pickpocket you'll know what they've got and what you have to cancel quickly.
Keep wallets in pockets that are not easy to access, and keep purses tucked in close to the front of your body.
Burglary
dentity theft may be the burglary of the future. Not only is burglary being fuelled by meth users looking to fund their next fix, traditional burglars know that they'll look much less suspicious walking through your neighborhood with your Social Security number written on their hand than if they have your brand new 42-inch plasma TV tucked under their arm.
The payoff from your stolen Social Security number or tax return will buy a dozen flat screen TVs, and without leaving as much as a fingerprint.
How Can You Grinch This?
When you're going shopping this Christmas, go in shifts so your home is never empty. Hide your financial records or place them in safe or locked filing cabinet. Password-protect your computer and encrypt any sensitive financial data on it. And hide your laptop.
Burglars tend not to stay in a home for too long so the harder you make it for them to find your information, the greater the chance they'll just leave with your DVD player. And you'll be thankful for that mercy!
Going, Going, Gone — The Dangers of Auction Fraud
Every year billions of dollars worth of gifts will be purchased through online auctions like eBay. Unfortunately, internet auction fraud was the second most reported offense in 2008, according to the Internet Fraud Complaint Center.
And while most of the fraud centers around things like failure to deliver the goods, delivering fakes, or rigged bidding, an increasing amount of fraud involves identity theft.
This is expected to grow as auction sites promote the use of credit cards as a safety net against failure to deliver. Unfortunately, giving a credit card number to a seller, along with your mailing address (and maybe your phone number in case there are any delivery problems) gives an identity thief a wealth of key information to steal your identity.
How Can You Grinch This?
Stick with reputable auction sites like eBay that have layers of security and guarantees in place to protect you. Use their auction guides to learn how to spot and avoid a scam, and consider using an escrow service for higher value transactions to place a layer of protection between you and the seller.
Ask lots of questions, study the responses carefully, and analyze any previous customer feedback for any indications that the feedback is fake.
Charity Scams
'Tis the season of taking as much as giving, and there's always an increase in the number of bogus charities asking for credit card donations throughout Christmas. This could be by phone, mail, and increasingly by email. And many of these scams will either spoof well-known charity organizations, or use similar-sounding names, to trick you into giving what is not deserved.
How Can You Grinch This?
Give only to charities you know and trust, and preferably through their website rather than in response to a phone call or mail solicitation.
Hard Drive Rebuilding
Planning to treat yourself to a new computer this Christmas? What are your plans for the old one?
Before you retire your old computer to the scrap heap or the auction block, make sure that you do a complete wipe of the hard drive so that you don't leave any extra gifts for the new owner.
In an exercise by students at MIT, researchers who purchased 158 used hard drives at second-hand stores and on eBay found that 128 had usable information still on them, including medical records, personal email, pornography, and more than 5,000 credit card numbers.
How Can You Grinch This?
Deleting files from a computer does not erase them. Consider using one of the many professional data erasing programs, like Data Cleaner (www.blancco.com) or Cyberscrub (www.cyberscrub.com). Data Cleaner costs around $30, and Cyberscrub costs around $50.